The Ghana-headquartered multi-sector fund Injaro Investment has closed its venture fund at GHS 216 million to invest in “best-in-class” companies, mainly in Ghana and the Ivory Coast.
Founded in 2009 by Jerry Parkes and Dadie Tayoraud, Injaro Investments was established to provide the capital that enables SMEs to realise their potential as the drivers of Africa’s economic growth. With over 14 years of operations, Injaro Investments, the parent company of IIAL, manages $65m across multiple funds, notably Injaro Agricultural Capital Holding and Agri-Business Capital Fund.
Where is the money coming from?
Investors in the Ghana cedi-denominated private equity fund – the Injaro Ghana Venture Capital Fund (IGVCF), include local pension funds such as Stanbic Investment Management Services, PETRA Securities, Databank Group, CAL Asset Management Company Ltd and institutional investors such as Venture Capital Trust Fund and Minerals Income Investment Fund Ghana.
Where will the money be invested?
IGVCF will back profitable Ghanaian SMEs with strong growth potential in various sectors, including Mining Support Services, Food & Agribusiness, Education, Healthcare, Inclusive Financial Services, Industrial Services (including services for the Mining and Oil and Gas sectors) and Light Manufacturing.
Eligible companies should be in operation for at least three years, generating revenues of at least GHS 20 million and net income (EBITDA) of at least GHS 3.5 million.
How will IGVCF invest?
The fund will deploy a combination of debt, equity or quasi-equity instruments to achieve the dual goals of financial returns and quality investee growth. The flexible financial structure of the fund will ensure the fund earns a commensurate share of project upside or business improvement. IGVCF will also promote environmental, social and governance practices across portfolio companies in its bid to contribute to job creation and sustained economic growth
The new fund will see IGVF back capable, reputable operators with proven business models and track records seeking expansion or growth capital. IGVF will take a majority or minority stake in the business depending on the business model and pre-investment assessment. Future exits will be achieved via cash flow, sponsor buy-outs, strategic Mergers and Acquisitions or Initial Public Offerings.
Plans for IGVF
Since the fund’s first close last year, it has already made its inaugural investment in Zeepay’s Series A round. The cross-border fintech company secured a $2 million equity investment from the fund. The fund is still in full deployment mode, accepting funding applications from companies.
Source: Injaro investments
